Question

Problem 15-33 (Algorithmic)

Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring the number of machines to ten. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The arrival rate is 0.07 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.6 machines per hour.

1. Compute the operating characteristics if the company retains the single-employee repair operation. If required, round your answers to four decimal places.
   

   	P0	=
   	Lq	=
   	L	=
   	Wq	=  hours
   	W	=  hours

2. Compute the operating characteristics if a second employee is added to the machine repair operation. If required, round your answers to four decimal places.
   

   	P0	=
   	Lq	=
   	L	=
   	Wq	=  hours
   	W	=  hours

3. Each employee is paid $30 per hour. Machine downtime is valued at $80 per hour. From an economic point of view, should one or two employees handle the machine repair operation? Explain. If required, round your answers to two decimal places.
   
   Cost of one employee system: $  
   
   Cost of two employees system: $  
   
   From an economic point of view, two employees  should handle the machine repair operation.

Answer 1

a)

b)

				P(no units in system) Po =			0.3089
				average units in the queue Lq=			0.2183
				average units in the system L=			1.2402
				average time in queue Wq =			0.3560
				average time in system W =			2.0226

c)

cost of one employee =30+80*2.6965=				245.72
cost of two employee =30*2+80*1.2402=				159.22

From an economic point of view, two employees  should handle the machine repair operation , since cost is lower.